Mgr. ANNA VEJMELKOVÁ, advokát

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AI-GENERATED CONTRACTS: 7 COMMON MISTAKES THAT COULD COST YOU MONEY

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“The contract looked modern, clear, and even generated by AI… but the other party won the dispute because one sentence was missing.”
Lucie used an AI tool to generate a contract. It looked professional. But it lacked a penalty clause and did not clearly define the terms of performance. When the dispute came, she didn’t receive a single penny.

What mistakes AI tools make when generating contracts, what might be missing or legally ineffective, and why even the most advanced AI cannot replace a lawyer.

❌ Most common mistakes in AI-generated contracts:

  1. Vague or general wording – no specific risks, no clear commitments.

  2. Missing key elements – warranties, penalties, deadlines, specific subject matter.

  3. Lack of legal knowledge – AI doesn’t know when written form is required or what legal elements are necessary.

  4. Inconsistency with Czech law – texts are often based on Anglo-American templates.

  5. Mixing legal and technical terminology – sounds impressive, but legally fails.

  6. Contradictory or illogical clauses – AI combines text fragments without legal coherence.

  7. False sense of security – looks polished, but lacks accountability and enforceability.


📚 Real-life example:

An entrepreneur used AI to draft a contract for e-shop development. The draft looked excellent – but there was no clause on intellectual property. The developer retained copyrights, disabled the e-shop after termination, and the entrepreneur had to rebuild everything from scratch.


✅ Lawyer’s recommendation:

AI is a great assistant – but a terrible lawyer.
Drafting contracts requires legal thinking, awareness of risks and consequences, and preparation for potential disputes. That’s something only a human – preferably a lawyer – can handle.

Did you create a contract with AI and aren’t sure it covers everything?
Get in touch – I’ll review it and flag critical issues before they cost you money.

Contact a legal professional – I specialize in contract law.
Learn more here.

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